Marks & Spencer executive chairman Sir Stuart Rose and executive director Steve Sharp have waived their entitlement to a chunk of shares in the company to maintain shareholder relations.
The shares were allocated by the remuneration committee under M&S’ performance share plan announced on June 11. Under the Performance Share Plan, share allocations are made dependent on the company’s adjusted earnings per share performance.
However, Rose said that he had made the decision to waive his entitlement following feedback from shareholders.
In a statement, Rose said: “I am committed to ensuring that Marks & Spencer engages in full and constructive dialogue with our shareholders. Following feedback from shareholder representative bodies, Steve Sharp and I have decided to waive our entitlement to 197,484 and 394,967 shares respectively, representing a third of the allocation awarded to us by the Remuneration Committee.”
He added: “The board of M&S is acutely aware of the governance issues we face and the importance of good shareholder relations. Our decision today reflects this.“
Shareholders will vote on a resolution to separate the Rose’s role as chairman and chief executive on the retailer’s board, at the annual shareholder meeting next month.